Market sentiment surrounding BNB has turned bearish in recent days. In case of a bullish trend reversal, BNB could initially target $744.
Like most cryptocurrencies, BNB bulls also dominated the market last week, pushing the coin's price into double digits. However, the bullish trend did not last as the coin fell victim to a correction in the past 24 hours. Will this put an end to BNB's bull run?
BNB rises 10% every week!
According to data from CoinMaerketCap, the price of BNB rose by 10% last week, taking the coin's price to $721. This brings the coin's market cap to nearly $104 billion.
Meanwhile, Binance Research posted a tweet highlighting major developments in the cryptocurrency space.
In this tweet, we mentioned the declining dominance of BTC and the 6% rise in the DeFi TVL sector. Separately, the tweet also mentioned that the cryptocurrency market has entered the “extreme greed” stage, with the fear and greed index reaching 80%.
This greed in the market has had a negative impact on BNB's price action. The value of this coin has plummeted by more than 2% in the past 24 hours.
The recent bearish price trend has also had a negative impact on the coin’s social indicators. For example, after a rapid increase, BNB shows a decline in social dominance and a decline in popularity.
A similar trend can be seen in the weighted sentiment graph, indicating growing bearish sentiment in the market.
Source: Santiment
Will this downward trend continue next week?
To see if BNB is poised for continued price decline, AMBCrypto evaluated other datasets for the coin. We notice that the long/short ratio of the coin has increased slightly on the 24-hour time frame. This means that long positions are increasing relative to short positions in the market, which usually indicates the potential for price appreciation.
Additionally, the coin’s trading volume has also declined by 33% in the past 24 hours, suggesting a reversal of the bullish trend in the coming days. However, not everything went in Coin's favor. BNB's Relative Strength Index (RSI) has gone south.
Moreover, Chaikin Money Flow (CMF) followed a flat trajectory. This means that no significant purchasing activity is occurring. When such episodes occur, it suggests that there will be more days of slow price movement.
Source: TradingView
If the coin price continues to decline, investors may witness the coin drop as low as $710. However, if the bulls buckle down and push the coin’s price higher, it could reach $744 again. This was the case as BNB faces strong liquidation barriers at that level.
read binance coin [BNB] Price prediction for 2024-2025
Increased liquidations often result in price corrections. Therefore, it will be important for BNB to surpass that level in order to set its sights on higher targets.
Source: Coin Glass
Previous: 6 of the Top 13 Meme Coins Hit Solana – Why This Matters Next: President Trump’s Bitcoin Victory Lap – Says “You’re Welcome!” After Bitcoin Reaches $100,000
Source link
